State law requires drivers in Ohio to carry the minimum amount of auto insurance at all times. Failure to provide proof of this coverage when requested by random driver selection, law enforcement, or after an at-fault accident is a crime and subject to an array of penalties including suspension of driving privileges and increased auto insurance coverage rates.
Ohio has some of the lowest auto insurance rates in the country, enabling drivers to obtain a policy without concern to their financial outcome. However, failure to maintain mandatory coverage as required in the state may cause increased insurance rates and added burden.
What Determines Car Insurance Rates in Ohio?
Several factors determine the cost of auto insurance coverage for Ohio drivers. Those factors include:
- Type of vehicle being insured (Insurance companies penalize drivers insuring certain vehicle types due to their increased risk of theft)
- Age of driver
- City/town of residence
- Credit history
- Driving history
- Deductible amount
- Insurance company selected for a policy
Drivers under the age of 26 are responsible for the most accidents in Ohio. Therefore, drivers who fall under this ag bracket should expect higher rates than drivers who are older than 26 years of age.
Ohio insurance agencies can obtain a credit report to determine auto insurance rates. A bad credit score means higher auto insurance rates. This is yet another reason to maintain good credit.
Just one ticket or accident on a driving record can significantly increase the cost of auto insurance. Following all rules of the road helps minimize risk of accidents and tickets that cause this increase in coverage rates.
Increasing the deductible amount is a second way to minimize monthly insurance rates. Although a deductible rate increase places more risk on the driver, those who obey the laws and drive safely shouldn’t be affected. Typically, insurance deductible amounts start at $500. Increasing the deductible amount to $1000 can result in a 30% policy rate decrease.
Auto Insurance Discounts
Auto insurance companies are notorious for providing discounts to their customers. Taking advantage of such discounts enables drivers to enjoy the best rates for their coverage. Discounts Ohio drivers may qualify for include:
- Student discounts
- Safe driver discounts
- Anti-theft features discounts
- Multi-policy discounts
- Multi-driver discounts
Ohio Insurance Requirements
To drive legally in Ohio, an insurance policy containing the following minimum coverage amounts is required:
- Bodily Injury coverage up to $25,000 (1 person)
- Bodily Injury coverage up to $50,000 (2 or more injured persons)
- Property damage coverage up to $25,000
Adding higher-dollar coverage amounts is an option available to Ohio drivers whom wish to maintain superior coverage on their vehicle. However, all drivers must, at a minimum, must carry the liability amounts listed above to comply with the Financial Responsibility Act in the state.
Individuals choose to add higher coverage amounts than what the state requires because even minor accidents quickly add up to hundreds or thousands of dollars in damages, and we all know the expense of visiting an emergency department, a doctor, or a health care specialist. Insurance policies cover only damages within the amounts specified in writing. Any accident-related damages over these amounts must be paid by the driver at-fault for the accident out of their own pocket.
Insurance identification cards are issued at the time an auto insurance policy is signed. This card should be kept inside of the glovebox inside the vehicle (or other safe spot) for easy access when needed. Although proof of mandatory coverage can be obtained electronically, it is also mandatory that drivers maintain and provide proof of their policy upon request.
Additional Ohio Auto Insurance
In addition to the state required auto insurance coverage, Ohio drivers may choose to increase the coverage amounts or add additional policies to their plan for extra protection. Uninsured motorist, collision, and comprehensive coverage are available for additional costs.
Uninsured/Under-insured Motorist: This coverage protects drivers involved in an accident with a driver lacking mandatory insurance coverage or those whose policy amount doesn’t cover the total costs of the damage.
Collision Coverage: Collision coverage provides protection for accident-related expenses for both vehicles.
Comprehensive Coverage: Comprehensive coverage covers non-accident related damages to the vehicle, such as theft, vandalism, fire, etc.
These policies are not required by the BMV, though beneficial to add to the coverage plans in many cases. Drivers leasing a vehicle from a dealership may be required by the dealership to obtain these additional coverages in addition to the state required amounts.
Is There an Insurance Alternative?
For those who understand the financial responsibility and risk being made when opting to drive without insurance, a BMV certificate or surety bond may be posted with the state in the amount of $30,000 in lieu of a policy purchase. The fee provides one year of alternative coverage. After the one-year period, insurance must be obtained or a new bond posted.
Driving Uninsured: The Consequences
Opting to ignore state laws governing Financial Responsibility is a crime in Ohio. Individuals unable to provide proof of coverage upon request can expect penalties that include:
- Suspension of Driving Privileges: A reinstatement fee is required to regain driving privileges after suspension for failure to provide proof of insurance.
- SR–22 Insurance Filing: SR-22 insurance is a special type of insurance that guarantees drivers will maintain their insurance coverage for a specified time period. SR-22 insurance is more expensive than traditional coverage and oftentimes a hassle to obtain.
- Suspension of Vehicle Registration: Proof of insurance coverage is required to reinstate a vehicle registration suspension.
- Increased Auto Insurance Rates: After an insurance violation, drivers oftentimes find it harder to obtain a policy. When a company is found to provide coverage, it is usually more expensive than the driver would’ve otherwise paid for the same coverage.
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